Judgment :- Sankarasubban, J. The Commissioner of Income-tax, Cochin has filed this appeal against the order of the Income-tax Appellate Tribunal, Cochin in I.T.A.No.658/Coch/95 dated 30.9.99. 2. The question of law which has been raised by the appellant in this case as follows:- 1. Whether, on the facts and in the circumstances of the case and since the machinery had not been put to use even for a day in the entire previous year the assessee is entitled to depreciation? 2. Whether, on the facts and in the circumstance of the case and also in the light of the decisions in 25 ITR 265 (SC) and 206 ITR 682, the Tribunal is right in law and fact in finding no infirmity in the order of the Commissioner of Income-tax (Appeals) and in affirming the Order? 3. When the matter came up for hearing, learned counsel for the respondent raised a contention that though the factory was under lock out so long as the Buildings, Plant and Machinery and other fixed assets relating to that factory formed an intergral part of the Block of Assets owned by the assessee company, depreciation is allowable oh such assets. The test of actual user is to be applied only in the year of purchase i.e. when the new asset is first put to use. Subsequently, on its merger into the Block of Assets, depreciation is allowable irrespective of the fact whether individual items in the Block has been put to use or not. 4. Since this matter was not considered by the Tribunal according to us, the entire matter has to be heard by the Tribunal. Hence we set aside the order passed by the Tribunal and remand the matter to the Tribunal for fresh decision in accordance with law and the directions contained in the judgment. ITA is deposed of as above.